The Vermont Department of Financial Regulation announced on July 31 that the state regulators licensed 14 new captives during the first seven months of 2015, already nearing the full-year 2014 total of 16.
The newly licensed captives include seven pure captives (single corporate owner captives), three risk retention groups, one special purpose financial captive, one industrial insured, one sponsored and one association. Five of the new captives have been redomesticated from other domiciles and three of them are in the healthcare sector.
“This strong start to the year is encouraging,” said Dave Provost, Vermont’s deputy commissioner of Captive Insurance. “Considering there are more choices than ever to domicile your captive — I am glad that when quality companies evaluate their options that they choose Vermont.”
Healthcare continues to be one of Vermont’s most abundant sectors, regulators said. Currently 96 hospital and doctors’ groups have Vermont captives, making it the second largest sector for captives trailing manufacturing with 100. Another growth area are redomestications of captives from another domicile to Vermont.
“Vermont has always sought companies of the highest standards. It does not surprise me that hospital and doctors’ groups are forming in Vermont in strong numbers,” said Vermont Gov. Peter Shumlin.
Newly licensed captives include the following sectors: healthcare, professional services, construction, manufacturing, non-profit, education, retail, trucking and insurance. Some notable new captives this year include PricewaterhouseCoopers, Syracuse University, Marubeni Corporation and Cummins Inc.
Looking at the number of new captives over the last several years, Vermont licensed 16 new captives in 2014, 29 in 2013, 32 in 2012, 41 in 2011 and 33 in 2010. Vermont has so far licensed 1,043 captives overall, with 586 active captives. Captive insurance has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act.
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